$1trillion economy: Nigeria’s public sector gets Code of Corporate Governance
The Financial Reporting Council, FRC, the Ministry of Finance Incorporated, MOFI, and the Institute of Directors Center for Corporate Governance, IoDCCG, have unveiled the draft of the Code of Corporate Governance guidelines for the public sector in Nigeria.
This was disclosed by the Executive Secretary and Chief Executive of the FRC, Dr Rabiu Olowo, and the Chief Executive of MOFI, Dr Armstrong Takang, at a press briefing on the forthcoming National Corporate Governance Summit.
The summit holding later this month, with the theme, ‘Institutionalizing Corporate Governance for National Transformation: The Imperative for Public Private Sector Collaboration’, will discuss the significance of fostering partnerships between government entities and private businesses to drive sustainable development, enhance service delivery and promote economic growth.
Speaking at the press briefing, the convener of the summit and head of the IoDCCG, UK Eke, noted that corporate governance in public and private institutions is key to the actualisation of the $1 trillion economy projected by the Nigerian Government.
President Bola Tinubu had, at the 29th Nigeria Economic Summit in Abuja on October 23, 2023, declared that Nigeria’s economy can grow to N1 trillion by 2026.
Eke stressed that the role of corporate governance in achieving the target cannot be over emphasized.
He said, “For us we are looking at the issue of a $1 trillion economy and one of those things that will enable it is the right corporate governance. As we begin to entrench the right corporate governance, then we’re going to have enhanced shareholder value because it has been proven that there is a direct positive connotation between corporate governance and corporate performance.
“If you look at corporate failures on account of technical insolvency, you have to put corporate governance at the center to understand why the business crashed.”
FRC boss, Olowo, said the theme of the summit is apt due to the importance of the public sector.
“It is high time that corporate governance also looks into the public space. We have enjoyed the success of corporate governance in the private sector and that’s why the summit will expose to the public the work that the Financial Reporting Council is doing to come up with a code of corporate governance for public institutions.
“The National Corporate Governance Summit is designed to be a distinguished and impressive gathering of minds examining changes, trends, challenges and best practices in corporate governance in Nigeria with the focus on the impact on national transformation.
“It serves as a premier platform that assembles practitioners, industry leaders, experts and professionals to discuss critical issues that shape the governance landscape in public and private organizations while offering unmatched networking opportunities that promote knowledge exchange, brand recognition and collaboration.
“The major outcomes of the 2022 summit include the need to improve and deepen corporate governance principles and practices in every organization in Nigeria be it public or private and practices in every organization in Nigeria.
“I believe that this particular outcome is not unconnected to the fact that today the FRC has exposed the Code of Corporate Governance for the corporate sector and also for public institutions. So it means that the outcomes of previous summits are being taken seriously,” he said.
Speaking further on the Code of Corporate Governance for the public sector, Olowo said, “It also includes publication of corporate governance compliance checklist by all Nigerian companies detailing any gaps and timelines to comply.
“It also includes commitment to strive to incorporate ethical based governance systems in both private and public sectors of the Nigerian economy, to determine, set and enforce entry standards for people, indeed, in organizations and public institutions.”
